This article summarises publicly available guidance from regulators and official sources. It is general educational information only and does not constitute legal or professional advice. Requirements vary by jurisdiction. Consult your regional authority or a qualified professional for advice specific to your situation.
Australian businesses looking to adopt AI have access to a range of government and private funding programs, from free advisory services to refundable tax offsets worth tens of thousands of dollars. Most business owners are unaware these programs exist. This guide maps the current landscape of AI funding support at the federal level, across key states, and through private accelerators, with official links and status notes for each program as of June 2026.
In short: The most accessible support for most SMBs is a combination of free advisory services through AI Adopt Centres and the R&D Tax Incentive (43.5% refundable offset for eligible AI development by businesses under $20M turnover). State governments in VIC, NSW, QLD, and SA all have active AI-related programs. Private accelerators exist for businesses building on AI platforms. Full details, eligibility, and links to apply are below.
Important: Program details, eligibility criteria, and availability change frequently. Always verify current status with the relevant funding body before investing time in an application. The information below reflects publicly available details as of June 2026. Links to official program pages are provided for each entry. This guide is updated quarterly.
Last reviewed: June 2026 | Next review: September 2026
How to Use This Guide
This guide describes what each program is, who it is designed for, and where to find more information. It does not assess whether your business qualifies for any program, because eligibility depends on factors specific to your business that only the funding body can evaluate. For each program, follow the official link provided and contact the administering agency directly to assess your eligibility and application requirements.
Federal Government Programs
AI Adopt Centres
The Australian Government established a network of AI Adopt Centres to provide free advisory and practical support to businesses looking to adopt AI. The program sits under the Department of Industry, Science and Resources (DISR) and is designed specifically for SMBs that do not have dedicated technology teams. Services include AI readiness assessments, technology demonstrations, and connections to specialists who can help evaluate which AI tools suit a business's specific workflows.
| Funder | Department of Industry, Science and Resources (DISR) |
|---|---|
| Type | Free advisory and practical assistance |
| Value | Free to eligible businesses |
| Designed for | Australian SMBs adopting AI tools or capability |
| Status (June 2026) | Active - check DISR website for centre locations and current services |
To find your nearest AI Adopt Centre and check current services, visit the DISR website at industry.gov.au and search for AI Adopt. The National AI Centre (NAIC) at CSIRO also provides a gateway to broader AI support programs at csiro.au/en/work-with-us/industries/ai.
Picture a regional manufacturing business owner in Bendigo weighing up whether to trial AI for production scheduling, with no idea where the money would come from. Instead of guessing at costs and hoping for the best, she books a free session with her nearest AI Adopt Centre. The advisor reviews her current process, flags which AI tools actually suit a small production line, and points her toward the R&D Tax Incentive for the custom integration work her IT contractor will need to quote. That's several hours of guesswork replaced by one 45-minute call.
R&D Tax Incentive
The Research and Development (R&D) Tax Incentive is one of the most valuable funding mechanisms available to Australian businesses developing AI technology. Eligible companies with annual turnover below $20 million can access a 43.5% refundable tax offset on eligible R&D expenditure, meaning the offset is paid out even if the business is not in a tax-paying position. For businesses above $20 million turnover, a non-refundable 38.5% offset applies.
AI development activities can qualify if they involve genuine experimental work aimed at resolving technical uncertainty through a systematic approach. Applying known techniques to build standard AI features using existing frameworks generally does not qualify. Activities that are more likely to qualify include developing novel AI models, training AI on proprietary datasets to achieve outcomes not achievable through existing products, or conducting controlled experiments to compare AI approaches. The key test is whether the experimental activities could not be resolved through existing knowledge without conducting the experiments.
| Funder | ATO and Department of Industry, Science and Resources (joint administration) |
|---|---|
| Type | Tax offset (refundable for businesses under $20M turnover) |
| Value | 43.5% refundable offset (under $20M turnover) or 38.5% non-refundable (over $20M) |
| Eligibility | Australian companies conducting eligible experimental R&D activities |
| Registration deadline | 30 April of the income year following the year of R&D activity |
| Status (June 2026) | Active - ongoing program, registration required annually |
The R&D Tax Incentive is administered jointly by the ATO and DISR. Register at business.gov.au/grants-and-programs/research-and-development-tax-incentive. Most businesses engaging with the R&D Tax Incentive for the first time work with a specialist R&D consultant to document eligible activities and prepare the registration. The ATO has published specific guidance on what qualifies as eligible R&D in the context of software and AI.
CSIRO Kick-Start
CSIRO Kick-Start connects SMBs with CSIRO researchers to work on collaborative R&D projects. The program co-funds the research: the business contributes a minimum of $10,000 and CSIRO matches up to $50,000, with a total project value of up to $100,000 over 12 months. Projects must involve genuine research or capability development, not routine product development. The program is particularly suited to businesses that have an AI-related problem they cannot solve with off-the-shelf tools and want access to research-level expertise.
| Funder | CSIRO (Commonwealth Scientific and Industrial Research Organisation) |
|---|---|
| Type | Collaborative R&D co-funding |
| Value | Up to $50,000 from CSIRO, matched by minimum $10,000 from the business |
| Eligibility | Australian SMBs with fewer than 200 employees and annual turnover under $20M |
| Status (June 2026) | Active - rolling applications through CSIRO Collaboration Hub |
Apply through the CSIRO Collaboration Hub at csiro.au/en/work-with-us/industries/kickstart. CSIRO assesses applications and matches businesses with relevant researchers. The process from application to project start typically takes 2 to 3 months.
ARC Linkage Projects
Australian Research Council (ARC) Linkage Projects provide competitive grants for collaborative research between industry and Australian universities. The program is best suited to businesses that want to develop genuinely new AI capabilities over a multi-year timeframe, in partnership with a research institution. Industry partners contribute cash or in-kind support, and the ARC contributes competitive grant funding. Projects typically run for 2 to 5 years, with total funding from all sources ranging from several hundred thousand dollars to well over a million.
| Funder | Australian Research Council (ARC) |
|---|---|
| Type | Competitive research grant, requires university partner |
| Value | Varies by project, typically $100,000 to $1M+ over project duration |
| Eligibility | Australian industry organisations partnering with an eligible Australian university |
| Status (June 2026) | Active - multiple funding rounds per year, check ARC website for current round dates |
To explore Linkage Projects, visit arc.gov.au/funding-research/funding-schemes/linkage-program/linkage-projects. Most businesses applying for Linkage Projects do so with a university partner who has experience with ARC applications. Finding the right university partner is typically the first step.
Cooperative Research Centres Projects (CRC-P)
The CRC-P program funds short-to-medium-term, industry-led collaborative research projects. Unlike Linkage Projects, CRC-P is specifically designed for industry to drive the research agenda in partnership with researchers. Grants typically range from $500,000 to $4 million over 2 to 3 years and require a consortium of at least two industry partners and at least one research organisation. CRC-P is well suited to industry consortia with a shared AI research problem, such as an industry association wanting to develop shared AI tools or standards.
| Funder | Department of Industry, Science and Resources |
|---|---|
| Type | Competitive research grant, consortium required |
| Value | Typically $500,000 to $4M over 2 to 3 years |
| Eligibility | Consortium of at least two industry partners and one research organisation |
| Status (June 2026) | Next round (Round 28) expected 2027 - check DISR for confirmed dates |
Check current round status and expression of interest timelines at business.gov.au/grants-and-programs/cooperative-research-centres-projects-crcp-grants. Forming the consortium is typically the longest lead-time activity, and most organisations begin this process 6 to 12 months before an expected round opening.
Medical Research Future Fund (MRFF) - AI in Health
The Medical Research Future Fund runs specific streams for AI applications in health, including AI-assisted diagnostics, clinical decision support, and health administration. These streams are competitive and generally require a research partner. They are most relevant to allied health businesses, healthcare technology companies, and medical practices looking to develop or evaluate AI-assisted clinical tools. Check the MRFF website at health.gov.au/mrff for current open streams and eligibility requirements, as these change with each funding round.
State Government Programs
State governments have each made commitments to AI adoption support, though the programs vary significantly in structure, amount, and availability. State programs tend to change more frequently than federal ones, with new rounds opening and closing across financial years. Contact your state government's department of industry or economic development for current opportunities. The programs below reflect publicly announced commitments as of June 2026.
Victoria
LaunchVic is Victoria's startup investment agency and funds programs supporting tech and AI businesses at various stages. Programs include grants, equity investment, and incubator access for businesses developing or commercialising AI capabilities. LaunchVic's programs are primarily aimed at startups rather than established SMBs adopting existing tools. The Victorian Government's Department of Jobs, Skills, Industry and Regions also periodically offers technology adoption grants. Check launchvic.org and business.vic.gov.au for current programs.
New South Wales
The NSW Government has funded AI and digital technology adoption programs through the Department of Customer Service and the Digital Restart Fund. Programs have included grants for small business digital transformation and specific AI pilot programs. The NSW AI Strategy has committed to supporting business AI adoption across key sectors including construction, professional services, and health. Visit business.nsw.gov.au and digital.nsw.gov.au for current program listings, as individual grant rounds open and close throughout the year.
Queensland
The Queensland Government announced a $53 million investment in Quantum and Advanced Technologies, which includes AI development and adoption programs for Queensland-based businesses. Programs operate through the Department of Employment, Small Business and Training, as well as Advance Queensland, which funds technology commercialisation and innovation. Check advance.qld.gov.au and desbt.qld.gov.au for current opportunities. Eligibility is generally limited to Queensland-headquartered businesses.
South Australia
South Australia announced a $28 million AI investment initiative designed to accelerate AI adoption across key SA industries including defence, mining, food and wine, and professional services. Programs are delivered through the Department for Trade and Investment. Check investment.sa.gov.au for current available programs and application requirements. As with other state programs, individual streams open and close throughout the year.
Private Accelerators and Investment
Beyond government programs, a small number of private accelerators and investors specifically target Australian businesses developing AI products or services.
AWS Generative AI Accelerator: Amazon Web Services runs an accelerator program for startups and SMBs building generative AI products on AWS infrastructure. Accepted businesses receive AWS credits, technical support, mentorship, and access to AWS go-to-market programs. The program is most relevant to businesses building AI-powered products, rather than those adopting existing AI tools. Applications are competitive and run in periodic cohorts. Check aws.amazon.com/startups/accelerators for current availability.
H2 Ventures: Sydney-based H2 Ventures is an AI-focused venture capital and accelerator. The firm invests in and supports early-stage AI and fintech companies in Australia. H2 is primarily an investor rather than a grant provider, but inclusion in their portfolio typically brings capital, mentorship, and network access. Relevant to businesses at a stage where equity investment is appropriate. Check h2.vc for current investment focus and application process.
How to Approach Applications
The most common reason businesses miss out on AI funding is not discovering programs until after they have already started the work the program would fund. The R&D Tax Incentive, for example, requires activities to be registered in the income year they are conducted. Starting AI development and applying retroactively is not possible. The practical habit is to check available programs before starting any significant AI investment, not after.
For most SMBs, the entry point into government funding support is through an accountant, business advisor, or a grant writing specialist who tracks program availability. The R&D Tax Incentive in particular is typically handled by specialist R&D consultants who work on a success-fee basis, making it accessible without upfront cost. AusIndustry advisers can also provide a preliminary assessment of whether your activities are likely to qualify before you invest time in an application.
When evaluating any program, the three questions to answer before investing time in an application are: Does my business meet the basic structural eligibility criteria (size, location, sector, turnover)? Do my proposed activities match what the program is designed to fund? Is the program currently open, or when does the next round open? Most administering agencies have a pre-application enquiry process, and using it before spending time on a full application is usually worthwhile.
Methodology (Real-World, Verified)
This guide is researched against primary regulatory sources and official regulator guidance, verified as of the date shown, and written for a business with no dedicated compliance function.
Read our full methodology and independence and disclosure policy.
Related reading: our can staff upload customer data to AI tools and our free AI staff policy template.
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Related reading: Claude AI Review for Australian Business and Notion AI Review for Australian Small Business.
What government grants are available for AI in Australia?
The main federal programs available to Australian businesses as of June 2026 are: the R&D Tax Incentive (43.5% refundable offset for eligible AI development by businesses under $20M turnover), CSIRO Kick-Start (up to $50,000 co-funded R&D for SMBs under 200 employees), ARC Linkage Projects (competitive research grants for industry-university partnerships), CRC-P (consortium research grants), and free advisory services through AI Adopt Centres. State governments in VIC, NSW, QLD, and SA have additional programs. Program details change frequently, so always verify current status with the relevant funding body using the official links in this guide.
Does AI development qualify for the R&D Tax Incentive?
AI development may qualify for the R&D Tax Incentive if it involves genuine experimental activities aimed at resolving technical uncertainty through a systematic approach. Applying known machine learning frameworks to build standard products using established techniques generally does not qualify. Activities more likely to qualify include developing novel AI models, training AI on proprietary data to achieve outcomes not available through existing products, or conducting controlled experiments to determine which AI approach best solves a specific problem. AusIndustry advisers can provide guidance on whether your specific activities are likely to qualify before you commit to an application. Register at business.gov.au.
Are there grants for businesses that want to use existing AI tools, not build new ones?
The R&D Tax Incentive applies to businesses developing AI capabilities, not those adopting existing commercial tools. The programs most useful for businesses adopting existing AI tools are the AI Adopt Centres (free advisory services) and state government technology adoption grants, which in some states have provided grants for SMBs implementing AI tools in specific industries. Check your state government's business support website for current opportunities. Free business advisory services through the Australian Small Business Advisory Services (ASBAS) program may also be able to help with AI adoption planning at no cost.
How often do AI-related grants open in Australia?
Federal programs like the R&D Tax Incentive and CSIRO Kick-Start are ongoing, with rolling or annual registration cycles. ARC Linkage Projects typically have two to three rounds per year. CRC-P rounds are periodic and less frequent, with a gap of 12 to 18 months between rounds being typical. State government grant rounds vary and can open with limited notice. The most practical approach is to subscribe to updates from the relevant funding bodies and check business.gov.au/grants, which aggregates many federal and some state programs in one place.
Can I apply for multiple AI grants at the same time?
Most programs do not prohibit applying for multiple grants simultaneously, but many do require disclosure of other government funding received or applied for, and some have restrictions on double-dipping on the same expenditure. For example, if R&D expenditure has already been covered by another grant, it generally cannot also attract the R&D Tax Incentive offset. Check the terms of each program individually. A business adviser or accountant familiar with grant stacking can help identify which combinations are permissible and maximise the total funding available for a project.
The information in this article is general in nature. It reflects a summary of publicly available guidance and does not constitute legal, privacy, or professional advice. Your obligations will depend on your specific situation, jurisdiction, and business circumstances. Do not rely on this article as a substitute for qualified legal or professional advice.
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